US Bacon. The inside story

The demand for bacon continues to climb higher and faster than ever and AEW Delford Systems is helping processors in the USA and the rest of the world to meet it. We believe our advanced, high-speed, high-volume bacon slicers deliver higher slicing yields, output rates, on-weight pack percentages, lower product giveaway and better product presentation than any other slicer.

Lynn Petrak, Special Projects editor of the American magazine, National Provisioner, gives us an inside look at and overview of the US market.

There’s nothing quite like the aroma of sizzling bacon, whether it comes from a hot frying pan, microwaveable dish, or in a meal brought to a restaurant table or drive-thru window. Bacon has been an American staple since the days of campfires and cowboys, and despite the fact that it is a mature category in the processed meats business, it is certainly not a tired one.

Research done by Chicago-based Information Resources Inc. (IRI) relays that sales of refrigerated bacon have reached more than $2.1 billion, a 2.4 percent increase over last year. Although low-carbohydrate, high-protein diets have fizzled in the past six months or so, the sizzle from bacon hasn’t stopped: several leading bacon brands have posted gains over the past 12 months, including Oscar Mayer, Hormel, Tyson, John Morrell, Plumrose, and Wilson Corn King, among others.

Although he, too, has noted that the low-carb phase has faded, Rick Parker, director of marketing for Kansas City, MO-based Premium Standard Farms Inc., says that bacon has continued to fare well. “We haven’t seen much of a decrease, and we are bullish about demand for high-quality, great-tasting bacon,” he says of the company’s Premium Farms bacon line.

As for the continuing appeal of the simple pork belly slice, industry observers offer varying opinions.

“For many of us, some of the staples are a little piece of stability in a fluid meal-development environment,” says Bob Messenger, publisher of the Morning Cup food trends newsletter. “Plus, bacon tastes good. It has its own distinct aroma that is instantly recognized, even from afar. It can be used as a side, as part of a sandwich, wrapped around scallops — there are just endless ways to make use of this product.”

Bacon products, it seems, are evolving with American tastes.

“Today’s consumers love the rich taste of bacon and are open to new flavors within this category. Some of the products that we see, such as Applewood Smoked Bacon and Cracked Peppercorn Bacon, are a great way to respond to consumers’ desire to treat themselves with new bacon tastes,” observes Karen Boillot, director of retail marketing for the National Pork Board (NPB), Des Moines, IA. Indeed, there are several new flavored bacons in the market lately, from a Honey and Maple Flavored Bacon from the Farmland brand to a Premium Naturally Hickory Smoked Cracked Peppercorn Coated Bacon from the Smithfield brand to Cinnamon Flavored Dry Cured Hickory Smoked Country Bacon from Broadbent’s, to name a few.

In addition to subtle ingredient additions and various smoke flavorings, processors are taking bacon upscale in other ways. “Premium bacons, such as center-cut bacons and thick-sliced bacons, are a great way to provide a high-quality flavorful product and increase high-end bacon sales,” notes Boillot. For example, Hormel’s Black Label premium bacon continues to climb in sales, jumping 6.8 percent last year to end up in third place in the overall category, IRI statistics relay.

Beyond flavor profile, manufacturers are cooking up innovations in other ways — literally. Fully-cooked bacons, which began making a dent in the market a few years ago, continue to grow in market penetration and sales. Last year, Tyson Foods unveiled a new hickory variety of its branded fully-cooked bacon, while ConAgra Foods’ Armour brand now includes a Ready Crisp precooked variety.

“Microwaveable, precooked, shelf-stable bacon products have really grown recently and are an excellent way to make the bacon category more accessible for consumers,” says Boillot.

Premium Standard Farms incorporated a fully-cooked bacon in its Premium Farms line. “The market is gobbling up precooked in retail and also in foodservice,” reports Parker, adding that although the trend obviously stems from the convenience factor, it doesn’t mean consumers don’t want fresh bacon anymore. “We find that although there are some people who overall prefer the convenience of fully cooked bacon, there is disproportionate use during the week. We see more fresh bacon as a weekend usage activity.”

On the foodservice side, Parker adds, precooked varieties come in handy for operators as they meet increasing demand for bacon as toppings for salads and sandwiches and as an entrée ingredient.

Multi-protein product

Not to be left out of a discussion on bacon is the protein itself. Although pork still rules the day, bacon made from poultry, specifically turkey, has been making category inroads. Sales of Kraft’s Louis Rich branded bacon rose 5.1 percent last year, IRI reports, while ConAgra’s Butterball bacon jumped 21.2 percent and Hormel’s Jennie-O bacon increased 19.8 percent.

“The popularity of low-carbohydrate diets, and especially the South Beach diet, may be part of the reason for the increased popularity,” points out Norma Farrell, consumer education specialist, public relations for the Washington, DC-based National Turkey Federation, noting that lifestyles may also play into the trend. “ Turkey bacon is a key to adding the bacon flavor to the diet for some ethnic populations that shun pork.”

Whether inspired by a greater array of options at the retail meat case or influenced by a more frequent and creative use of bacon in foodservice dishes, consumers are likely to continue their longtime love of bacon.

Bacon bits

Retail sales of private-label bacon lead the pack, with $397 million, followed by Oscar Mayer branded bacon at $389.6 million, Hormel Black Label bacon at $142.7 million, Farmland bacon at $69.3 million, and Bar-S bacon at $68.7 million. (Source: Information Resources Inc.)

By day, consumers eat the most bacon at breakfast. Morning meals account for 72 percent of average daily bacon consumption. Dinner is next, with 19 percent, followed by lunch at 8 percent and snacks at 1 percent. (Source: National Eating Trends, NPD)

Forty-four percent of in-home bacon usage is now precooked. (Source: National PorkBoard)